STOCK OPTION PLANS

6 Months Ended

Jun. 30, 2025

Share-Based Payment Arrangement [Abstract]

STOCK OPTION PLANS

NOTE 6 STOCK OPTION PLANS

Stock Options

On January 18, 2010, we adopted the 2010 Stock Option Plan (the “2010 Option Plan”), which allows the Board to grant options to purchase up to 15,625 shares of common stock to directors, officers, key employees, and service providers of our company. In 2011, the 2010 Option Plan was amended to increase the number of shares issuable under the 2010 Option Plan to 375,000 shares. In 2012, 2010 Option Plan was again amended to increase the number of shares issuable under the 2010 Option Plan to 203,125 shares. The shares issuable pursuant to the 2010 Option Plan are registered with the SEC under Forms S-8 filed on February 4, 2010 (No. 333- 164691), June 24, 2011 (No. 333-175143), and December 4, 2013 (No. 333-192655). The 2010 Option Plan expired on January 18, 2020. As of June 30, 2025 there were 21,422 options outstanding under the 2010 Option Plan and as of December 31, 2024 there were 23,659 options outstanding under the 2010 Option Plan.

On December 15, 2020, we adopted the Iveda Solutions, Inc. 2020 Plan (the “2020 Plan”). The 2020 Plan had a maximum of 156,250 shares authorized with similar terms and conditions to the 2010 Option Plan. The shares issuable pursuant to the 2020 Option Plan are registered with the SEC under Forms S-8 filed on October 7, 2022 (No. 333- 267792). In 2024, the 2020 Option Plan was amended to increase the number of shares issuable under the 2020 Option Plan to 656,250 shares.

As of June 30, 2025 and December 31, 2024, there were 224,256 and 217,056 options outstanding, respectively, under all the option plans.

Stock options may be granted as either incentive stock options intended to qualify under Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), or as options not qualified under Section 422 of the Code. All options are issued with an exercise price at or above the fair market value of the common stock on the date of the grant as determined by our Board of Directors. Incentive stock option plan awards of restricted stock are intended to qualify as deductible performance-based compensation under Section 162(m) of the Code. Incentive Stock Option awards of unrestricted stock are not designed to be deductible to us under Section 162(m). Under the plans, stock options will terminate on the tenth anniversary date of the grant or earlier if provided in the grant.

We have also granted non-qualified stock options to employees and contractors. All non-qualified options are generally issued with an exercise price no less than the fair value of the common stock on the date of the grant as determined by our Board of Directors. Options may be exercised up to ten years following the date of the grant, with vesting schedules determined by us upon grant. Vesting schedules vary by grant, with some fully vesting immediately upon grant to others that ratably vest over a period of time up to four years. Standard vested options may be exercised up to three months following date of termination of the relationship unless alternate terms are specified at grant. The fair values of options are determined using the Black-Scholes option-pricing model. The estimated fair value of options is recognized as expense on the straight-line basis over the options’ vesting periods.

Stock option transactions during six months ended June 30, 2025 were as follows:

	June 30, 2025
	Shares			Weighted-Average Exercise Price
Outstanding at Beginning of Period		217,056			18.56
Granted		10,000			2.15
Exercised		-			-
Forfeited or Cancelled		(2,800	)		40.47
Outstanding at End of Period		224,256			18.24
Options Exercisable at Period-End		212,225		$	18.49

During the six months ended June 30, 2025 the Company granted options to acquire 10,000 shares of our common stock with a fair value of $16,573 or based on a Black-Scholes valuation model.  During the six month periods ended June 30, 2025 and 2024 the Company recognized $0 and $25,600 of compensation cost relating to the vesting of options.

Information with respect to stock options outstanding and exercisable at June 30, 2025 is as follows:

		Options Outstanding						Options Exercisable
Range of Exercise Prices		Number Outstanding at June 30, 2025		Weighted- Average Remaining Contractual Life		Weighted- Average Exercise Price		Number Exercisable at June 30, 2025		Weighted- Average Exercise Price
$	1.43-142.08		224,256		7.5	$	17.55		212,225	$	18.49

The fair value of each option granted is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions used for options granted.

	2025
Expected Life		6.25 yrs
Expected Volatility		90	%
Risk-Free Interest Rate		4.00	%